FTSE lacking conviction
The FTSE has had little conviction over the past few days to stay above 6800/30, a level that will need to be breached if we are to retarget last month’s highs. Any push through 6810 could see 6830 resistance targeted. On the downside, a break of 6770 takes us back down to 6730, while a breach of this metric could see 6700 back in sight.
DAX could tackle barrier
The 9600 level on the Germany 30 has been a barrier since the beginning of the month, and with event risk still upon us in the shape of the European Central Bank rate setting and non-farm payrolls tomorrow, it’s unlikely that we will see a convincing attack of the level.
We are now caught in a range with the 200-hour moving average capping gains at 9591 while the 100-HMA provides intraday support at 9527.
The trendline support at 9392 from the 28 June lows is helping to support the overall uptrend for the index residing around 9400. Any break below 9525 will target 9480, while a move through 9622 could put the DAX back on course for the highs seen in late January.
Dow finding support
For the Dow Jones, the 16,415/20 level stands in the way for any additional moves to 16,592 with 16,280 providing support. A move back down should find overall support at 16,105 and then 16,070.
On the intraday, there is rising support from the 50-HMA at 16,372 and then 16,345. Watch the relative strength index's bearish divergence on the four-hour chart which could indicate a return to 16,280/16,300 in the near term.